Employees can arrange to salary sacrifice the following eligible items administered by the Payroll Services team:
nlc are the University’s vehicle lease provider. nlc also administer a range of salary sacrifice benefits and can assist with additional salary packaging options. These include:
Flinders University offers employees the option to salary sacrifice superannuation contributions to UniSuper, external and private funds.
This benefit is administered by the Payroll Services team.
What is Salary Packaging?
Salary packaging is also referred to as a salary sacrifice arrangement. It is an arrangement between an employer and an employee, where the employee agrees to forgo part of their future entitlement to salary or wages in return for the employer providing them with benefits of a similar value. Employees are advised to seek independent financial advice before entering into a salary sacrifice arrangement.
Who is eligible?
The full range of salary packaging options are available to all employees appointed on a continuing or fixed-term contract. The packaging options are not available to casual employees, casual academic employees or to scholarship holders.
Casual employees and casual academic employees are, however, able to salary sacrifice a percentage of their salary into UniSuper.
The University strongly recommends that any employee considering participating in a salary packaging arrangement seek independent financial advice. The University is not in a position to offer financial advice and accepts no responsibility for advice provided by independent advisors. All employees entering into a salary packaging arrangement must read and agree to the Salary Sacrifice Terms and Conditions.
The information contained is privileged and confidential and is provided to employees of Flinders University on the understanding that it neither represents nor is intended to be advice, or that the University is engaged in rendering any advice. The University, its officers, employees and agents or others involved in the preparation of the Flinders University Salary Packaging Guide expressly disclaim all and any contractual, tortious or other form of liability to any person in respect of the Guide and any consequences arising from its use by any person in reliance upon the whole or any part of its contents, and in any subsequent versions.
If you are not a Flinders University employee, you are hereby notified that the dissemination, distribution, copy or use of this information and other collateral documentation is strictly prohibited.
Terms and Conditions
Flinders University Salary Sacrifice Terms and Conditions
This document sets out Terms and Conditions of the salary sacrifice agreement between Flinders University and all employees. It is the employee’s responsibility to read and understand them. By taking up an offer under this document the employee agrees to the Terms and Conditions that it contains,
The Terms and Conditions must be read in conjunction with the Enterprise Agreement 2014-2017, Clause A14.5 Salary Sacrifice. Subject to this clause, Flinders University reserves the right to make any changes to the Terms and Conditions.
1. Salary Sacrifice Statement
1.1 Employees of Flinders University on continuing or fixed-term employment may at their own discretion enter into arrangements with the University where they agree to forgo cash salary and receive certain benefits in lieu including additional superannuation contributions. These Terms & Conditions regulates the operation of these arrangements referred to as the “Salary Sacrifice Program”. The terms recognises that:
1.1.1 In providing benefits, the University needs to ensure that it is protected against loss in the event an employee falls short of their program obligations. Accordingly the employee agrees that they indemnify the University against loss or liability arising as a result of the provision of any benefits under the Program.
1.1.2 In providing benefits, the University needs to ensure that it is protected against loss in the event an employee falls short of their program obligations. Accordingly the employee agrees that they indemnify the University against loss or liability arising as a result of the provision of any benefits under the Program.
1.1.3 Changes to the rate of Fringe Benefits Tax (FBT) applying to benefits, or to the manner in which FBT is calculated, may vary due to changes in legislation or interpretations by the courts or the Commissioner of Taxation. Under the Terms and Conditions, the University reserves the right to alter benefits to ensure the Total Employment Cost established for the employee does not increase as a result of such changes.
1.1.4 All arrangements under the Salary Sacrifice Program will apply to the foregoing of future earnings only
1.2 The University may terminate any arrangement under the Salary Sacrifice Program should changes in legislation, the enactment of new legislation or interpretations by the courts or Commissioner of Taxation imposes on the University financial or other obligations which are, in its opinion, unacceptable to the University.
2. Obligations and Responsibilities
2.1 The University, its officers, employees, contractors or agents are not engaged in rendering professional, financial or taxation advice. Employees accept and agree that it is their responsibility to seek independent advice on these matters and the appropriateness of any salary sacrifice arrangement to their specific circumstances.
2.2 Employees agree that neither the University, its officers, employees, contractors or agents can be held responsible should the benefits provided prove at any time to be inappropriate to their circumstances.
2.3 Employees agree to keep all receipts and documentation for goods and services provided under the Salary Sacrifice Program, and to make such available for inspection if requested by the University. Where the employee seeks reimbursement for an expense, the receipt must be forwarded to the University with an attached Expense Claim Reimbursement Form.
2.4 Employees agree to be bound by the arrangements, procedures and requirements of the Salary Sacrifice Program and as otherwise directed by the University.
2.5 Employees agree to keep the University indemnified against any loss or liability arising from:
- the cessation of any of their benefits payments
- any variation to the terms and conditions on which their salary and benefits are provided to them
- any liability to Fringe Benefits Tax under the Salary Sacrifice Program
- the payment of salary and benefits in advance
- the University arranging for a third party to provide benefits to or for their benefit
- termination of an agreement under the Salary Sacrifice Program by either party for any reason.
2.6 Employees agree to compensate the University for all administrative costs and charges incidental to the provision of salary and benefits under the Salary Sacrifice Program as determined from time to time by the University or third parties on its behalf. For this purpose such compensation may form part of the total cost of the benefits provided under the Program.
2.7 Employees agree to either cease the salary sacrifice arrangement or make alternative arrangements to continue making payments for the total costs associated with any benefits whilst on leave without pay.
3. Effect of termination of Salary Sacrifice Program arrangement
3.1 On termination of any agreement to provide benefits under the Salary Sacrifice Program:
3.1.1 The obligation of the University to provide benefits immediately ceases without claim by employees for any compensation whatsoever.
3.1.2 Any novation or rental agreement immediately ceases.
3.1.3 Salary and benefits are reconciled as at the termination date. Any accrued but unpaid remuneration is paid to employees as salary. Alternatively, the employee agrees by entering into the Program that any over-payment arising from remuneration being provided in advance is to be repaid to the University.
3.1.4 Monies owing to the University become due and payable upon demand whether such sums are then due to be paid or not. Unless otherwise agreed, repayment is by way of payroll deduction from future fortnightly salary.
3.1.5 Repayment terms will be reached in writing between employees and the University.
3.2 Where agreements are terminated as a result of employees ceasing employment at the University, the employee agrees:
- that any monies owing can be off-set against any salary, leave and other remuneration that may be due and payable to the employee;
- to re-pay any remaining monies owed to the University; and
- to reimburse the University for any liabilities which may be determined subsequent to the employment ceasing but which arise from the Salary Sacrifice Program.
4. Supporting Procedures
4.1 The Salary Sacrifice Guide Web Page provides information about up-to-date provisions of benefits under the Salary Sacrifice Program, relevant eligibility applied, and process to access any benefits.
Salary Packaging FAQs
Do I need approval to salary sacrifice?
You do not require direct approval to request salary sacrifice, however, it is important to understand that the University will always decide what benefits are to be made available to employees. Whilst considering employee requests, at no time will employees be entitled to direct the University on how they are to be paid.
What is a ‘Benefit’?
Any non-cash benefit or cash payment made or expected to be made by the University for the benefit of the employee. Benefits also include any cash payment made to the employee by way of reimbursement of expenses incurred by the employee.
Are all employees eligible to salary sacrifice?
All continuing and fixed-term contract employees are eligible. The full range of salary sacrifice options are not available to casual employees, casual academic employees or scholarship holders. Casual employees and casual academic employees are, however, able to salary sacrifice a percentage of their salary into UniSuper.
How much can I salary sacrifice?
There is currently no limit set for eligible employees, employees can elect to sacrifice up to 100% of their gross salary.
Can I salary sacrifice my mortgage, school fees, health insurance?
No, these items are Taxable Benefits and subject to full FBT and not offered as options under Salary Sacrifice.
Can salary sacrifice arrangements be backdated?
No, a salary sacrifice arrangement must be in place prior to commencement and only future earnings can be exchanged for benefits. Once a salary sacrifice arrangement has commenced there can be no access to the sacrificed salary, the sacrificed salary must be permanently forgone for the period of the arrangement.
If I have planned or unplanned unpaid leave what happens to my salary sacrifice arrangement?
Where leave without pay is approved in advance of being taken, employees will be required to contact firstname.lastname@example.org and arrange appropriate alterations for the period of leave without pay. For long periods of unplanned unpaid leave employees are advised to contact email@example.com immediately and inform the University of the change in circumstances, in instances of long term unplanned unpaid lease it is strongly recommended to seek independent financial advice.
Employees with motor vehicles should contact nlc, as there are FBT, lease payments and insurance issues that need to be managed. Payment of these items must continue during the period of leave without pay.
What is a Fringe Benefits Tax (FBT)?
Introduced by the Federal Government in July 1986, Fringe Benefits Tax (FBT) is a tax payable by the employer on certain benefits provided to employees. From the 1st April 2015 the FBT rate is 49% and FBT is payable on the grossed-up taxable value of the benefit provided. Motor Vehicle Leasing is usually the only benefit provided by Flinders University that may attract FBT and an employee entering into such an agreement agrees to pay the total FBT liability from their salary in addition to the lease payment.
What is a Reportable Fringe Benefits (RFB)?
When the value of certain fringe benefits provided to a staff member exceeds $2,000 in an FBT year the grossed-up taxable value of those benefits is recorded on the staff member’s payment summary. This amount is known as a reportable fringe benefit. RFB tax arising from salary packaging certain items may be taken into account in assessing your eligibility for the Medicare levy surcharge, for some tax offsets and for child support payments.
When does the FBT year commence?
The FBT year is the 1st April to 31st March the following year.
How can I arrange to salary package a Novated Lease?
Flinders University’s preferred novated lease provider is nlc, you can find a link through to nlc on the salary packaging web guide. nlc can also assist you with Airline Club Membership, Professional Subscriptions and Portable electronic devices.
Does salary sacrificing affect the employer superannuation contribution amount (SGC or 17%) made by the University to UniSuper?
No. The University superannuation contribution continues to be based on employee's salary rate as specified in the current Flinders University Enterprise Certified Agreement.
What should I consider to ensure salary sacrificing any contribution to superannuation does not result in a debt to ATO?
If you have concerns regarding the impact of salary sacrifice the University strongly recommends seeking independent financial advice. The University is not in a position to offer financial advice or guidance.